How Does a Conveyance Deed Protect Your Rights in Property Transactions?

7 minutes

In the home loan world, legal documentation serves as the backbone that ensures transparency, legality, and security for all parties involved. Among these essential documents, the Conveyance Deed stands out as a pivotal instrument that facilitates the lawful transfer of property ownership from the seller to the buyer.

Despite its significance, many individuals embarking on property transactions remain unaware of its critical role. This article explores into the essence of a Conveyance Deed, its components, and its indispensable place in property dealings.

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What is a Conveyance Deed?

A Conveyance Deed is a legal document that formally evidences the transfer of ownership of immovable property from one party to another. It is not merely a piece of paper but a binding agreement that holds substantial legal weight in the eyes of the law. This deed ensures that the buyer acquires all the rights, title, and interest in the property, free from any encumbrances, unless otherwise specified.

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Key Elements of a Conveyance Deed

It includes several essential elements that ensure the property transfer is legal and clear. Here are the main components:

• Parties Involved: Clearly identifies the seller (grantor) and the buyer (grantee).
• Property Description: Detailed description of the property, including its location, dimensions, and boundaries.
• Transfer Clause: Specifies the intent to transfer ownership rights from the seller to the buyer.
• Consideration Clause: Outlines the agreed-upon purchase price and payment terms.
• Covenants and Warranties: Declarations by the seller regarding the property’s title and assurances against defects.
• Execution and Registration: Signatures of both parties and witnesses, followed by legal registration with the appropriate governmental authority.

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Why is it Important to Register a Conveyance Deed?

The Registration Act of 1908 mandates the registration of conveyance deeds. Without registration, such deeds hold no legal value and cannot be presented in court. Here’s why registering a conveyance deed is crucial:

• Legal Validity: Registration legally recognizes the document, making it enforceable.
• Proof of Ownership Transfer: It serves as official evidence that the property transfers to the buyer.
• Protection Against Disputes: Registered deeds safeguard the new owner’s rights by preventing third-party claims.
• Future Sales Requirement: You must have a registered deed when reselling the property in the future.
• Land Records Update: It ensures that government land records reflect changes in ownership, aiding in official mutation processes.

Documents Required for a Conveyance Deed

To execute a conveyance deed, several important documents are required. These documents confirm the legality of the property transfer and protect both the buyer and seller. Here is a list of the key documents needed:

• Title Deed of the Property: Original document proving the seller’s ownership.
• Previous Conveyance Deeds: Any earlier deeds related to the property’s history.
• Sale Agreement: The agreement outlining the terms and conditions of the sale between buyer and seller.
• Property Tax Receipts: Latest receipts confirming that all property taxes are paid up to date.
• Encumbrance Certificate: A certificate showing the property is free from legal liabilities or disputes.
• No Objection Certificates (NOCs): NOCs from relevant authorities like municipal bodies or housing societies.
• Identity Proofs: Government-issued IDs of both buyer and seller (e.g., passport, driver’s license).
• Address Proofs: Current address documents for both parties.
• Passport-sized Photographs: Recent photos of both the buyer and the seller.
• Power of Attorney: If the transaction is conducted through a representative.
• Approved Building Plan: Sanctioned plan from the local authority, if applicable.
• Occupancy Certificate: For newly constructed properties, certifying legal occupancy.
• Payment Proofs: Receipts or documents evidencing payment of the purchase price.
• Loan Clearance Certificate: If there’s an existing mortgage, proof that it’s been cleared.
• Society Documents: Share certificates and society registration details, if the property is in a housing society.
• Mutation Documents: Records showing the transfer of property in municipal records, if applicable.
• Litigation Documents: Any documents related to past or ongoing litigation involving the property.

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Steps Involved in Drafting a Conveyance Deed

Drafting a conveyance deed involves several key steps that ensure the property transfer is clear and legal. Here is the simple process:

• Preparation: Gather all necessary information, such as details of the property and the parties involved (buyer and seller).
  
• Drafting: Lawyers or legal experts create the initial draft of the conveyance deed, ensuring it includes all the required elements.
  
• Review: Both parties carefully review the draft to ensure the details are correct. Any errors or omissions must be fixed before moving forward.
  
• Stamping and Registration: Pay the required stamp duty and register the deed with the local land registry. This step makes the deed legally binding.
  
• Execution: Finally, both the buyer and seller sign the deed in the presence of witnesses. After this, the deed is delivered to the buyer, completing the property transfer.

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What to Do If the Conveyance Deed is Lost?

If a conveyance deed is misplaced, here are the steps to follow:

1. File a Police Report: Lodge a First Information Report (FIR) with the police to report the loss.
2. Publish a Notice: Announce the loss of the conveyance deed in a newspaper to make it public.
3. Prepare and Notarize an Affidavit: Draft an affidavit that includes the details of the property and the FIR. Have it notarized for legal purposes.
4. Request a Certified Copy: You can obtain a certified copy of the deed from the sub-registrar’s office by paying the applicable fees.

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How to Cancel a Conveyance Deed?

Under Sections 31, 32, and 22 of the Specific Relief Act, parties can revoke a conveyance deed if they prove it is voidable or could potentially cause harm. If they registered the deed following the Indian Registration Act of 1908, the concerned parties can also cancel it through mutual agreement.

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Deemed Conveyance Deed

A deemed conveyance deed is when the transfer of property rights, title, and interest is done in favor of a housing society. This process takes place once the state government issues the deed, although the society must apply for it by submitting the required documents to the appropriate authority. Both parties involved should be available for the hearing before the authority issues the deemed conveyance deed.

Documents Required

• Land records and municipal documents
• Agreement copy between the landowner and developer
• Registered and stamped agreement copy of each flat
• Approved building plan

Conditions for Application

• The members must form a cooperative housing society at least 3-4 months before the application.
• The developers should sell at least 60% of the flats in the building.
• The society must pass a resolution approving the application for the deemed conveyance deed.

Difference Between Conveyance Deed and Sale Deed

Aspect	Conveyance Deed	Sale Deed
Definition	A legal document that transfers ownership of property from one party to another.	A specific type of conveyance deed that documents the sale of property in exchange for a price paid or promised.
Scope	Encompasses various modes of property transfer, including sale, gift, exchange, lease, or mortgage.	Exclusively pertains to the sale transaction of property.
Consideration	May or may not involve monetary consideration (e.g., gift deeds involve no payment).	Always involves monetary consideration as it documents a sale.
Usage	Used for different types of property transfers, not limited to sales.	Specifically used when property is sold between parties.
Registration	Must be executed on stamp paper and registered to be legally valid.	Also requires execution on stamp paper and registration; it’s essential for legal ownership transfer.

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Conclusion

A conveyance deed plays a critical role in real estate. It ensures the legal transfer of ownership and protects both the buyer and seller. Without this document, property transactions remain incomplete and can lead to disputes.

To secure property rights, always ensure the conveyance deed is properly drafted, signed, and registered. This step protects your ownership and avoids legal issues later. By understanding its importance, you can confidently move through real estate transactions, knowing your ownership is secure.

At Credit Dharma, our experts provide personalized financial advice to help you make informed home loan decisions. Trust us to guide you towards the best loan options tailored to your needs.

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Frequently Asked Questions